According to the latest data from the National Association of Home Builders (NAHB) the share of adults planning a home purchase in the next 12 months dropped to 13% in the final quarter of 2022. This is down from 15% in the previous quarter and is not surprising, given that housing affordability worsened during this period, as mortgage interest rates surpassed 7.0% and reached levels not seen in nearly 20 years.
On Friday, the Kansas City Fed President Esther George said that the Federal Reserve must remain “patient” in waiting to see if the pace of price increases in the services sector are waning as the central bank attempts to bring inflation back to its 2% target rate. George added that labor shortages could be a hindrance in getting inflation down. What does this means for home buyers and sellers?
According to a recent articles on usnews.com, Federal Reserve Bank of San Francisco President Mary Daly appeared to signal that the Fed will keep interest rates at their current peak for the foreseeable future. With this news, it is important to understand how this decision impacts real estate. Let’s break down what Daly said and what it means for the real estate market.
The economy is a complex and ever-changing entity. It can be difficult to keep track of all the different indicators that measure our economic health. One way to evaluate the economic conditions in your area is to look at four high frequency indicators: airlines, movie tickets, hotel occupancy, and gasoline supplied. Let’s take a closer look at these indicators.
In a very interesting and fact filled article on cnbc.com they share that “Debt has surged over the past year due to inflation running near its highest pace in more than 40 years and amid rising interest rates and strong consumer demand.”
It’s well known that mortgage interest rates have been on the climb this year, but the speed of this increase has not occurred since the 1980’s, according to an article written by Jeff Ostrowski for BankRate.com In the article he states…
In an article written by Lorie Knish for CNBC.com she states “The hot seller’s market in recent years prompted buyers to go above and beyond to seal the deals on their prospective homes, a recent survey finds.” She further quoting an article from Clever Real Estate, sharing that “72% of buyers int he past couple years have regrets about their home purchase”.
In an article written by Sarah O’Brien for CNBC, she quotes a National Assoc. of Realtors article that states “Inventory remains tight and prices continue to rise nationally with nearly 40% of homes still commanding the full list price.”
The highly competitive home buyers market spanning the past few years has left the majority of buyers with a notable feeling of buyers remorse. The primary causes of the regrets are a result of:
In a recent CNBC interview, Kansas City Federal Reserve President Esther George noted that the Fed is looking to tighten financial conditions, of which equity markets are a component, in an effort to tamp down price increases running at their fastest pace in more than 40 years.